U.S. Markets closed

STAG Industrial Prices Public Offering of 6.5M Common Stock

Zacks Equity Research

STAG Industrial, Inc. STAG recently announced its plans to raise fresh capital by issuing 6.5 million shares of common stock through a public offering. The company expects gross proceeds of $190.1 million.

Further, as part of the offering, STAG Industrial will give underwriters a 30-day option to purchase up to an additional 975,000 shares of its common stock. The offering, subject to fulfillment of customary closing conditions, is expected to close on Apr 4.

Net proceeds of the offering will be used to repay outstanding balance under the company’s existing $500 million-unsecured credit facility. In addition, amounts will be used for working capital and general corporate purposes. Also, it will be used to fund acquisitions in future.

STAG Industrial focuses on the acquisition and management of single-tenant industrial properties across the United States.  Amid industrial tailwinds, strategic acquisitions position the company to take advantage of the growing demand for industrial space.

In fact, high-consumer spending, e-commerce boom, as well as a healthy manufacturing environment amid recovering economy and job market are spurring demand for the industrial real estate category. This demand upside is creating remarkable growth opportunities for industrial REITs, including Terreno Realty TRNO, Duke Realty Corp. DRE and Prologis PLD. Hence, STAG Industrial’s efforts to expand its portfolio on the back of accretive acquisition opportunities will drive external growth.

The latest common stock offering will boost the company's financial flexibility and help meet its financial obligations efficiently. Moreover, it provides ample scope for deploying capital for long-term growth opportunities and rewarding higher returns to stockholders, at the same time.

This Zacks Rank #3 (Hold) stock has gained around 23.3% over the past three months, outperforming 17.9% growth recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD) : Free Stock Analysis Report
Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
Terreno Realty Corporation (TRNO) : Free Stock Analysis Report
Duke Realty Corporation (DRE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research